Several important events gave rise to the Agribusiness Teaching Center: 1. I fired Fresno State as a development effort for the Armenian Agricultural Academy (AAA). 2. Canceling the contract with Fresno made 500,000 dollars available for new direction of development. 3. Rector Tarverdian and I agreed that a new curriculum in agribusiness would fill a missing part in AAA efforts to educate students entering a market economy and a democratic society. 4. I used the 500,000 dollars from the Fresno contract to finish construction of a floor of AAA to add classrooms, offices, and the most modern computer center (classroom) in Armenia. The remaining funds were used to pay Dan Dunn's salary at Texas A&M for the next two years, after which A&M received a new contract from USDA. In the absence of these events there would be no Agribusiness Teaching Center.

The funds I diverted to Texas A&M (500,000 dollars per year) to establish the Agribusiness Teaching Center are now paying dividends as the Center is firmly established as a regional center for teaching the foundations of a market economy and a democratic society.

The classical economists named land (natural resources), labor and capital as the sources of wealth. Neoclassical thinking adds human capital as a unique resource, not only for creation of wealth, but for continued economic development. Human capital is developed by the institutions of society and, reasonably, developing those institutions was an important focus of my interest in 1998-2000.

Human Capital in MAP

As the new Director of USDA MAP, I began a series of meetings with all of our major clientele. The Armenian Agricultural Academy (AAA) ranked high in the list. In our first meeting I discovered that Rector Tarverdian of AAA was unhappy with his experience regarding the USDA program and Fresno State University.

When I asked for examples, he gave three. One, he was tired of recruiting faculty for short courses that produced no discernible changes. Two, he didnt like sending people for tours in the US that seemed to be more like holidays. Three, he was tired of receiving visitors who spend more time in the air flying to Armenia than they spent working in Armenia. He said that if he just had the airfare from all of those activities he could double his budget and return the Academy to its former level of prestige. I promised the Rector that we would work in new directions.

In order to do what I promised the Rector I estimated I would need about a million dollars per year. I started with reference to the current budget continuing a third allocation of $500,000 for the California State University at Fresno. They were the designated institution to lead a restructuring program at the Armenian Agricultural Academy. As approximately one million dollars had already been spent with little observable result, and in view of the Rectors dissatisfaction, I began to view this contract in more detail.

Prior to taking the MAP job I visited Fresno State to review their contract and work. I had a very disturbing conversation with the Dean of Agriculture. He told me that he had no plans to send a long-term faculty member to Armenia. I found the same sentiment among faculty in the College of Business. I asked RB, who was leading the effort, if he had plans to become a full-time consultant in Yerevan. He said No. To me it seemed apparent that the Fresno model was set to continue in the present model; one that seemed inadequate and one that engendered Rector Tarverdians dissatisfaction.

Around the middle of August, Ambassador Tomsen called and said that the security guards were not to admit RB to the Embassy for any purpose. Furthermore he was preparing a letter to RB to convey the same instruction. Ambassador Tomsen was very close to Ruth Harris and she subsequently said the reason given was that RB had insulted the security guards. As I heard this I had a vision of me sitting in the next budget meeting with the Ambassador and defending the million dollars already spent and a new $500,000 a year grant to Fresno with RB as the project leader. Likewise, I would be selling RB's program to Rector Tarverdian.

I decided it was time for a change and sent RB a letter telling him that he would not be included in the upcoming budget talks and that the Fresno contract was canceled. Within a day of receiving a copy of my letter, Ambassador Tomsen sent me a note saying that I had made the right decision and that I had his complete support in firing Fresno State.

Ambassador Tomsen's continued support was not long in coming. During the next weekend, Minister of Agriculture Movsysian invited me to a small dinner party he was having for the Ambassador. The dinner was mostly a review of old times between the Ambassador and the Minister, but I did manage to mention my plan for supporting a new direction in the Agricultural Academy. As we walked out to the parking lot after dinner, the Ambassador said without any prompting, By the way, put some graduate assistantships in your next budget plan. I certainly did just that, and before the end of September I had a new line item in our budget for the Academy of one million dollars per year.

After getting approval of a new line item for a million dollars to the Academy program I decided to go ahead with a graduate program that would award six graduate assistantships for study in the U.S., and to begin curriculum development in AAA. I recommended to the Rector that we continue both a graduate and an undergraduate program and he agreed. The Rector and I also agreed that the idea of retraining current faculty and revising existing curricula under the Fresno model had met with little success. In fairness to the Fresno State effort I did observe some of the significant rigidities and faculty conflicts they encountered.

I proposed that we set up a new degree that would be additive to current Academy studies -- one that would avoid conflicts with his faculty and one that might provide a model of new teaching methods. The Rector agreed and we also agreed that concepts of marketing and agribusiness development were gaps in the current Academy program. I recommended, furthermore, that the curriculum would be taught by teachers recruited throughout the U.S. university system. Agribusiness development thus became the goal of a new curriculum. (See memo to USDA and files)

Memo to Files

To: USDA or to Whom It May Concern: February 21, 1999

The United States Marketing Assistance Project is committed to assisting Armenia in coming to terms with the challenge of building a secure and prosperous future, fully integrated into regional and international institutions and fully integrated into the investment and market process of the world community.Russia was Armenia’s only market while it was a member of the former Soviet Union.Now, market links must be created with the rest of the world and Armenia is looking in that direction.Their succession to the World Trade Organization is expected this year.This is a first step in building the future of Armenia

Scientific and educational leadership from the Armenian Agricultural Academy is one of the keys to continuing the quest for links to world economy.The Academy must provide the human capital that will be vital to privatization of marketing firms and development of market potential.While the Academy employs world class scientists in the area of technical agriculture, the Academy has essentially no expertise in the field of marketing.The Rector of the Academy has told me that one of his highest priorities is to improve the teaching of marketing.

Improvement in marketing can and will generate jobs.More than 1,000 jobs in food processing were created in the summer of 1998 via USDA support of strategic loans.Continued expansion of food processing will, however, depend on abilities in marketing.These abilities must be created in Armenia and development of a new marketing curriculum at the Academy is the place to begin.Rector Tarverdian and I also agree that the curriculum should be taught outside of the regular Academy program where it will not be seen as a criticism of the current program as this has been a recent problem.A new teaching center is the best solution.

Thousands of tons of food are being wasted because of inefficient post-harvest technology. Many more thousands of tons could be produced on un-utilized and under-utilized agricultural land. Using this capacity to feed Armenia and to conquer the export market requires marketing skills not now available. Providing high quality products at the time and place that consumers demand them is the marketing challenge in America and will be no less so in Armenia. A new and expanding marketing curriculum at the Armenian Agricultural Academy is absolutely essential

I nominated Texas A&M to be the lead institution for curriculum development because I thought they had a budget that would support international work and I liked their visibility in the profession. Rector Tarverdian accepted the strategy. I recommended A&M to Washington and asked Tim Grosser to contact them about developing a proposal.

That strategy moved ahead rapidly during the summer of 1999 via a series of A&M visits to Armenia. The Agricultural Economics Department at Texas A&M under the direction of John Nichols eventually developed a workable and excellent program of mentoring the graduate students in the US and providing a full-time program leader, Dan Dunn, for an undergraduate curriculum to be called the Agribusiness Teaching Center (ATC). Dans success in leading ATC to its current success has made him the Norman Borlaug Honoree for 2007.

John Nichols, Susannah and Dan Dunn

In preparation for ATC, Rector Tarverdian and I began discussions on where to house the Center. In December of 1999 we signed a Memorandum of Understanding to create the Agribusiness Teaching Center.

USDA Marketing Assistance Project (MAP) agrees to renovate the fourth floor space directly above the existing third floor space in the Armenian Agricultural Academy (AAA), and now occupied by offices of USDA MAP. The renovated space will be known as the Agribusiness Teaching Center. The Center will contain two classrooms, a learning center, office spaces for three instructors, and a restroom. These spaces will be fully equipped to supply the needs of teaching the new Agribusiness Curriculum and will be ready to begin operations on September 1, 2000.USDA MAP agrees to expenditures of no more than 110,000 dollars for total renovation and equipment needs. The Education Manager of USDA MAP will specify equipment needs. USDA MAP building committee will determine the design of the space. USDA MAP agrees to supply AAA with receipts for all payments made for goods and services required to complete the project.

AAA agrees to accept funds from the donor community and deposit them in a fund known as the Armenian/American Development fund for AAA. The Rector will fund applied research grants and extension minigrants from donations to this fund, up to the limit provided by USDA MAP expenditures justified by receipts for constructing and equipping the Agribusiness Teaching Center. Final funding decisions on these grants will be made by the Project Coordinator of USDA MAP in keeping with priorities determined for a national program of applied research and extension. The Rector and the Project Coordinator will make a mutual determination of members appointed to an Advisory Committee that will determine national priorities.For the Armenian Agricultural Academy_A. Tarverdian Date_______________________For USDA Marketing Assistance Project__Bill R. Miller Date_______________________The signed agreement resides in the files of USDA MAP

In January of 2000 I contracted with Kilikia Construction to begin work on building new space on the fourth floor at 74 Teryan St. on the AAA campus.

The Agribusiness Teaching Center opened on September 4, 2000. Approximately 250 guests including Armenian media, Ministry of Agriculture officials and AAA faculty attended the Grand Opening Party and heard speeches by Ambassador Michael Lemmon, Bill Miller, Rector Tarverdian and John Nichols. The Rector cut a ribbon; guests toured two classrooms, a computer center and library, and office spaces for the teaching staff. Rector Tarverdian seemed particularly proud, calling ATC the crown jewel of the work by USDA MAP. I was particularly proud of the work by Kilikia. New plastered walls, refinished floors, new desks for classrooms and faculty, new blackboards, and new computers created a space equal to or better than anything we had at the University of Georgia.

Program Results (2006)

I was fortunate to address the ATC graduating class of 2006. A short abstract of that speech is contained at the end of this chapter.

The Agribusiness Teaching Center (ATC) has graduated a total of 106 students. In 2002 there were 28 graduates; in 2003, 28 graduates; 25 graduates in 2005; and 25 in 2006. None were graduated in 2004 because the Armenian Agricultural Academy (AAA) switched from a 4 year to a 5 year undergraduate schedule, and in turn the ATC switched from a 2 year to a 3 year program. In the beginning, ATC admitted most of its students from AAA, but currently there are 18 Georgians either in the program or accepted to ATC, and they are some of the best students. Including students from the Republic of Georgia satisfies a long-run goal of ATC to become a regional center for agribusiness education.

ATC Graduating Class of 2006

Dan Dunn and Bill Miller

Approximately 20 ATC graduates have obtained assistantships for a Masters Degree or Ph.D. in US Universities. A further goal is for ATC to offer a Masters Degree in Agribusiness for students of the region. Currently, ATC students receive both a Certificate from Texas A&M and a degree from AAA (now the State Agrarian University of Armenia (SAUA)).

ATC accepts only students who have an acceptable use of English. Typically there are 3-4 applicants for each position in the next beginning class. Many students transfer to AAA to be eligible for entrance to ATC. The Rector asserts that ATC has increased interest in learning English. In 1998 about 10 percent of AAA students had a reasonable command of English while in 2006 this percentage has risen to 70 percent. The Rector attributes ATC with increasing student interest in learning English. SAUA also has added Agribusiness as a new specialty to the curriculum. The Rector also asserts that the success of ATC has been a factor in significantly increasing the enrollment in SAUA.

During a conversation with the Vice President of Kotayk Beverage Company, the Vice President said that he always awards one or more summer internships to ATC students and that he considers the graduates to be better prepared than business students from Yerevan State, the largest University in Yerevan. Summer internships are required of all ATC students and they are closely monitored on the job. ATC has been successful in obtaining internships for all of the students and jobs or graduate assistantships for all graduates.

Despite success, the future of ATC is in doubt. The MAP program that funded ATC has ended and MAP programs have been transferred to the USDA Foreign Agriculture Service (FAS). FAS has told ATC they should be in transition to a sustainable institution that will not require US assistance. To this end, Dan Dunn who still heads ATC after seven years, used accumulated reserves from no-year funding to build more space on the firth floor of SAUA. The Rector advised him to go as high as he wanted.

The fifth floor opened June 1, 2006 and contains a new Armenian NGO named as the International Center for Agribusiness Research and Education (ICARE). ICARE has the ability to accept grants for research and other profit making activities that could support ATC. Dan Dunn hopes that ICARE will develop both grants and contributions that will sustain ATC. The number of students from the Republic of Georgia continues to increase and the reputation of ATC as an international program is likely to grow.

New Masters Degree Begins December 2010

ATC will develop a Masters Degree program. A Masters Degree is a priority of the Armenian Ministry of Education who now provide all of the funding for SAUA. SAUA will also have a Masters Degree as this is a goal of the Bolonga Agreement. Armenia recently signed this agreement that will require a Masters Degree and a set of academic requirements making SAUA graduates eligible for transfer credit in western Universities of Europe and in the US.

The original concept of offering graduate assistantships on a competitive basis for further study in the US was continued by MAP. After the first six assistantships were awarded in 1999, the scope of the offers was limited to two assistantships per year, and the funds saved in this policy were diverted to ATC. In making this change in funding, I was following a recommendation of Ambassador Lemmon who said his experience indicated that students sent to the US did not return to the home country. His data from USAID did, in fact, show that only about 30 percent were returning.

The Ambassador was right in continuing support of ATC, but he was wrong about our Armenian graduate students. Seven of the 12 awarded (below) did return for work in Armenia. More are expected to return when they graduate. Seven are either working on the Ph.D. or have completed the degree.

Program Results, ATC graduates 2010

Two hundred and thirty-two students have graduated from the Agribusiness Teaching Center as of November 2009, including 205 from Armenia and 27 from the Republic of Georgia.

According to the ATC Career Placement and counseling Center (CPCC) 171 ATC graduates (about 74% of total graduates) are currently employed. In addition to Armenia and Republic of Georgia, some ATC graduates work in the U.S., Canada, Hungary, Paraguay, Russia, Germany, The Netherlands, Belgium, Malawi and Afghanistan,

Forty two ATC graduates not employed are now pursuing, or have completed, MS or PhD degrees in the universities of

Armenia

(3),

Republic of Georgia

(3),

United States

(9), and

Europe

(5).

Most of the 19 ATC graduates currently not employed or in graduate work are either in the Army or busy with childcare.

As expected the employment of ATC graduates is consistent with their educational background. Current employment includes Information & Communication (4), Self Employed (10), Customer Service (58), Project Management and Coordination (11), Marketing Management and Analysis (33), and Financial Management and Analysis (55).

In terms of the number of ATC graduates employed, the top employers in Armenia

Human capital is vital for economic development and Armenia has a head start in this important area. ATC students represent and will carry forward the new way of thinking required for a market economy and a democratic society. A new wave of economic development headed by China and India is sweeping the world. The industrial revolution has been replaced by a revolution led by knowledge and ATC and their students will be on the frontier. Armenia will be impacted by the ATC institution for decades to come and create enormous U.S. influence and good will. How ATC will develop within SAUA is still an open question. Most likely it will become a department in the University as U.S. development funding is not in tune with funding new institutions like ATC.

Armenian Students Funded in U.S. Schools by USDA MAP

Armen Asatryan

Ph.D. in Agricultural Economics from Texas A&M University, December 2003

Employed by Armenian Technology Group, Yerevan, Armenia 2004-2005

Has taught at ATC and is currently working on a research project for FAS in Yerevan, Armenia

Employed as Marketing Director for Hovnanian International, Yerevan, 2005-2006. Current position: Community Development Officer for the Basildon District Council, U.K.

Vahe Heboyan

Masters degree in Agricultural Economics in August 2001 from University of Georgia. He taught courses at Agribusiness Teaching Center in Yerevan 2001 2004. Summer of 2006 he did market research for CARD.

Current course of study: Ph.D. in Agricultural Economics, expected August 2008 at UGA

Artavazd Hakobyan

Masters degree in Agricultural Economics from Auburn University, December 2001

Worked for USDA/MAP, taught classes at Agribusiness Teaching Center 2002-2004

Employed as Operations Analyst, The World Bank, ECSSD, Yerevan 2005 to present.

Zaruhi Karapetyan

Attended University of Georgia 1999-2000; dropped out of program.

Later received masters degree from Virginia Tech University. Currently studying engineering in Detroit.

Anahit Gevorgyan

Masters degree in Food Science from Pennsylvania State University in May 2003

Worked for MAP/USDA in Yerevan 2003-2005

Currently employed with tourism industry in Yerevan

Rafael Bakhtavoryan

Masters degree in Agricultural Economics from Texas A&M University, May 2004. Currently teaches at Agribusiness Teaching Center, Yerevan, Armenia and has an assistantship for PhD study at Ohio State.

Natalie Nazaryan

Masters degree in Agricultural Economics, August 2004, from Ohio State University

Current course of study: Ph.D. in Agricultural Economics, expected to graduate in 2007 at Colorado State University.

Tatevik Zohrabyan

Masters in Agricultural Economics, December 2005 from Texas A&M University.

Current course of study: Ph.D. in Agricultural Economics, expected 2008.

Anush Khojoyan

Masters degree in Agricultural and Applied Economics, August 2005 from Clemson University.

Currently working in California and applying for Ph.D. program.

Aleksan Shanoyan

Current course of study: Masters in Food and Agribusiness Management at University of Illinois at Champagne/Urbana, May 2006

Media Coverage ATC Graduation June, 2006

On June 4, Arshaluys Tarverdyan, Rector of the Armenian State Agrarian University, led the 2006 ATC graduation ceremony.

Levon Mkrtchyan, RA Minister of Science and Education; John Evans, the U.S. Ambassador to Armenia; Levon Rukhkyan, the RA Vice Minister of Agriculture; Manvel Badalyan, Head of the ASAU Council and Alumni Association; Bill Miller, former USDA Marketing Assistance Projects Director; and other dignitaries participated.

Rector Tarverdyan awarded the U.S. Ambassador to Armenia, John Evans, and the 1998-2000 director of USDA MAP, Bill Miller, with the newly instituted Armenian State Agrarian University Gold Medalfor their input in the development of agrarian education and research in Armenia. The event was covered by four Armenian TV companies, several news agencies and newspapers.

Some Highlights of Comments to the Students:

U.S. Ambassador to Armenia, John Evans: Your timing is extraordinarily good. You will be a part of the agrarian revolution that is going to take place in the South Caucasus.

***

Bill Miller: In summer 1998, I discussed with Rector Tarverdyan what USDA MAP can do in education. It was my first

day as the Director of USDA MAP and Mr. Tarverdyans second day as the Rector of the Agricultural Academy. Today, we have this wonderful opportunity to congratulate and thank the Agrarian University, ATC, Dr. Dunn, USDA, U.S. taxpayers, and the U.S. Embassy for all their efforts and especially the parents for the most important input - the students. Knowledge and competence are the moving force to globalization.

I challenge you to become the linchpins of the Armenian and Georgian societies.

Bill Miller Awarded the ASAU Gold Medal

At the opening ceremony, Rector Tarverdyan stressed the role of USDA Marketing Assistance Project, former USDA MAP Director, Bill Miller, and Daniel Dunn in starting a modern western structured agribusiness education in Armenia. The Rector did not mention his own role but he has been very supportive in establishing

and further development of ATC.

Bill Miller, Professor Emeritus, University of Georgia and Honorable Professor of the Armenian State Agrarian University, visited Armenia to participate in the ATC graduation ceremony on June 4. It was Dr. Miller's first visit since he left Armenia six years ago upon completion of his more than successful mission as the Director of USDA Marketing Assistance Project in Armenia in 1998- 2000.

The entire Armenian agribusiness sector was rehabilitated and adapted to the new market economy and it experienced unprecedented modern development through USDA MAPs financial, technical, and marketing assistance efforts under Dr. Miller's leadership. Dozens of old and newly emerged fruit and vegetable

processing enterprises, wineries, and dairy processing factories restarted or started successful production, marketing, andexport activities due to the wise use of the American taxpayer money, American and Armenian expertise, and the hard work by

Armenian farmers and agribusinesses.

At the ATC graduation ceremony, the Rector of the Armenian State Agrarian University, Arshaluys Terverdyan and Bill Miller met as old friends. Rector Tarverdyan had prepared a pleasant surprise for the U.S. Ambassador to Armenia, John Evans and for Bill Miller: they were awarded the Armenian State Agrarian University's Gold Medal for their significant input in the development of agrarian education and research in Armenia. They were the first two persons ever awarded the University's newly established Gold Medal.

"The biggest input in achievements that we now have in agrarian production, research, education, and consultancy through USDA MAP support programs has been provided by Bill Miller--", Rector Tarverdyan stated while handing over the award.

"The history of Armenia will yet evaluate the great professional and personal input that people like former USDA MAP Directors, Bill Miller, Craig Infanger, Allan Lines, the late USDA MAP Marketing Manager, Harley Martin; ATC founder and now Director of ICARE Foundation, Dan Dunn, and many USDA TDY consultants helped this Biblical country create its prosperous future.

As an Armenian, I pay the biggest tribute to these great Americans. I would like to state the following: about them."

"The economic role of these people at the dawn of the 21st century is no less critical for Armenia than the political role that their great countryman Henry Morgenthau (the US Ambassador to Ottoman Empire, 1913- 1916) played in the beginning of the 20th century and still plays for the rest of Armenian history."

ATC and ICARE foundationare happy to host one of these great Americans, Bill Miller.

Addendum: Graduation Speech Abstract

Speech Draft: At 2006 graduation for students of Agribusiness Teaching Center

Bill R. Miller, Emeritus Professor of Agricultural and Applied Economics, The University of Georgia, USA

(This is the way it was written. Delivery may have varied.)

Ambassador Evans, Rector Tarverdian, Members of Armenian Ministries of Education and Agriculture, Faculty of Armenian State Agricultural University, Parents of Students, and in particular-Students of the Agribusiness Teaching Center, it is my great privilege to address you today.

A dream comes true today for parents and students and I congratulate you. It is also a dream come true for Rector Tarverdian. In the fall of 1998 he gave the signal to go ahead with development of an agribusiness curriculum. Today, I have no doubt that his dream happening. ---------------------------------------------

In closing this is my challenge to the graduates of 2006. I begin by reminding you of the concept of linchpin. “A linchpin, also spelled linch pin, lynchpin, or lynch pin, is a fastener used to prevent a wheel or other part from sliding off the axle upon which it is riding.” It was a linchpin that kept the wheels on the wagons used to develop the riches of America’s first colonies; it was a linchpin that kept the wheels on the Conestoga wagons as they rolled west to develop the vast grasslands and mountains of the American west. A linchpin was at the heart of early development in America. Wagon drivers were important, but linchpins were indispensable.

Thus, I challenge you to use your education here in the Agribusiness Teaching Center to become drivers and linchpins in developing democracy and market economy in Armenia and on into Armenia’s neighboring States.